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GST has to be Reworked to Reduce the Burden on Small and Medium Businesses: Hasmukh Adhia

The revenue secretary, Hasmukh Adhia in New Delhi has said that the GST rate structure needs to be reorganised to minimize the burden on small and medium businesses."There is need for some rejig in rates... it is possible that some items in the same chapter are divided. There is a need for harmonisation of items chapter wise and wherever we find there is a big burden on small and medium businesses and on common man, if we bring them down, there will be a better compliance," Adhia said.Even after four months of the introduction of the tax regime, it has been causing  troubles and other compliance issues. The GST Council, which is the highest decision-making body of the indirect tax regime has also made several rounds of changes.The GST regime incorporates a dozen central and state levies service tax, excise duty and VAT which will take at least about a year to get settled, he told PTI.To ease the inconvenience caused by the small and medium businesses in filing GST returns and paying their taxes, there are many adjustments made to make it industry-friendly.The GST Council has also made more efficient pricing on 100 commodities and aided the exporters by making the refund process easier. However, Adhia explained that rejig would definitely be a time-consuming process as there are some calculations to be done by the fitment committee, which will analyse and decide upon the rates and the items which need to be rationalised under the indirect tax regime, which has come into power from July 1.The GST Council has gone through the approach paper and has also sorted the items to be marked for rationalisation, but if it is unalterable, the council always has the option to make deviations from the approach paper. "We are very keen to do it as early as possible, it depends on how much time the fitment committee takes to work on it. They need data, calculate revenue loss. They need various comparisons. But harmonisation has to be done," he said.The 23rd meeting of the GST Council held on November 10 in Guwahati, comprised of representatives from all the states, chaired by Union Finance Minister Arun Jaitley.There has been a hike from RS 75 lakh to 1 crore for the composition scheme, where the businesses can make tax payments at a nominal rate. Even the small businesses with a turnover of 1.50 crore are permitted to file and make tax payments quarterly, as against the monthly payments being made earlier.When questioned as to how much time will it consume to stabilise the GST regime, Adhia replied: "It will take one year. Because it is a new system for everybody... There has been a complete overhauling of tax system in GST, so one year is needed."The GST has been beneficial in subsuming more than a dozen taxes and also helped in transforming India into a single market for an uninterrupted movement of goods and services.
GST has to be Reworked to Reduce the Burden on Small and Medium Businesses: Hasmukh Adhia
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GST has to be Reworked to Reduce the Burden on Small and Medium Businesses: Hasmukh Adhia 32 GST has to be Reworked to Reduce the Burden on Small and Medium Businesses: Hasmukh Adhia News Article
Kranthi Tilak Reddy Oct 24, 2017
The revenue secretary, Hasmukh Adhia in New Delhi has said that the GST rate structure needs to be reorganised to minimize the burden on small and medium businesses."There is need for some rejig in rates... it is possible that some items in the same ...
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Remedy by the GST Council to the Exporters

The GST council has specified 0.1 percent tax rate on goods acquired for export purposes in a relief to merchant exporters.A senior ministry official said that the exporters would be permitted to procure 0.1 percent tax on export of goods. The Council consented two proposals, to put a stop to cash blockage of exporters caused by upfront payment of GST on inputs, stated an official statement.  "One for immediate relief and the other for providing long-term support to exporters. Immediate relief is being given by extending the advance authorization (AA)/ Export Promotion Capital Goods (EPCG)/100 per cent EOU schemes to sourcing inputs from abroad as well as domestic suppliers," the statement said.It was mentioned that there is no need to pay IGST and cess on imports for the holders of AA/ EPCG and EOUs."Also, domestic supplies to holders of AA / EPCG and EOUs would be treated as deemed exports and refund of tax paid on such supplies given to the supplier," it added.Furthermore, Public Sector Units and specified banks are also permitted to import gold without payment of IGST."This can then be supplied to exporters as per a scheme similar to AA," it added.The merchant exporters of India record for over 30 percent of the country’s exports that usually work on the margins of 2-4 percentage.Especially for those products having high GST imposition rates, the costing was disorganised as they got to pay GST and seek refund after a time lag, said FIEO in a statement. For the exporters, attempts would be made to initiate an e-wallet facility to provide liquidity from April 1.  The Directorate General of Foreign Trade (DGFT) will draw up norms, for the operation of e-wallet facility. FIEO had said earlier that, as most of the micro and small exporters borrow money to pay taxes, they are hit hard by GST. It is notified that based on the previous year’s exports and an average GST rate, under this facility e-currency is credited to exporter’s account. , When the duty paid supplies have to be undertaken, the money can be debited from e-wallet. When the proof of exports is made available, the amount can be credited to a running account, it said.Also Read GST's  Impact on Exports and Imports
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Remedy by the GST Council to the Exporters

Remedy by the GST Council to the Exporters

Saurabh Jain
The GST council has specified 0.1 percent tax rate on goods acquired for export purposes in a relief to merchant exporters.A senior ministry official said that the exporters would be permitted to proc...
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Aftermath of GST on Indian Imports

There has been a setback in the preparation of tax refunds under the Goods and Services tax regime resulting in lockup of funds of the exporter. This had major impacts on the ability of the exporters to be internationally competitive. There was a meeting held on September 19 to discuss the issues that are related to export sector after GST implementation, with the head of the committee Revenue Secretary, Hasmukh Adhia.In the course of the meeting, the Federation of Indian Export Organisation stressed that the exporters refund process should be fast tracked by the government or as much as 65,000 crore could be blocked in the July-October period, that will affect the business potential of the exporters.The Indian exports were not doing well in the month before GST regime was implemented. The export growth rate fell during March-July before it inclined again in August. But the export organisations fear that the growth curve could decline again owing to the negative impacts of GST.For the inputs by the suppliers, it is a requisite for the exporters to pay GST. As the exports are tax free, they can demand refunds from the government.A speaker from the Federation of Indian Export Organisation said that the shooting liquidity crunch has affected majority of the exporters as the money paid by them in the form of tax are blocked by the government. The refund of the taxes for the month of July can be expected only in December.As the deadlines for filing the returns are persistently pushed back, the process of fund claiming is becoming more time consuming than anticipated.
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Aftermath of GST on Indian Imports

Aftermath of GST on Indian Imports

Kranthi Tilak Reddy
There has been a setback in the preparation of tax refunds under the Goods and Services tax regime resulting in lockup of funds of the exporter. This had major impacts on the ability of the exporters ...
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GST: The Revolutionary Move in Taxes

BENGALURU: A 17-year-old dream, the Goods and Services Tax (GST), finally became a reality on July 1. The move, as claimed, will be a great push for Prime Minister Narendra Modi’s reform for development.GST is said to be the mother of all taxes as it looks at replacing all the indirect taxes making way for a smooth economy. Before one seeks to understand this new system and its functionality, one needs to comprehend what is taxation and how it works.INDIAN TAX SYSTEMA tax is a contribution by an individual or organization to state revenue which is imposed by the government. There are two types of taxes, direct and indirect. Direct tax is something that a person pays directly from his pocket. For example, you earn some income and the government imposes a certain percentage to be deducted directly from your salary. In case of indirect tax, this is something an individual pays through a medium or channel, which means taxes are imposed on goods and services here. For example, you go to a restaurant and you pay a certain amount of tax called, ‘service tax’, ‘VAT’, or ‘sales tax’. Here, the customer ends up paying the tax for the goods or service that has been rendered.Income tax is the most known form of direct tax. This type of tax is applicable to both an organization and an individual. There are various tax slabs that the government decides for various groups. Anyone earning There is no need to get into direct tax, as GST has been implemented for smooth functioning of indirect taxes. It is also expected that GST will improve transparency in taxation and help build a corruption-free economy.HISTORICAL MILESTONES OF GSTThe BJP-led Atal Behari Vajpayee government in the year 2000 introduced the idea of GST which was overlooked by the finance minister of West Bengal, Asim Dasgupta. Later, Mr Vajpayee made a special request to the Chief Minister of West Bengal to let the Finance Minister to design the GST model.In 2006, P Chidambaram, Union Finance Minister, of the Congress, announced that GST would roll out in April 2010. In 2008, the Empowered Committee made a report on the structure and the recommendations that GST required.In 2009, the empowered committee suggested dual GST module, under which there would be two components Central GST and State GST and taxes like excise, state, VAT, entertainment tax, service tax, entry tax, etc,  would be absorbed under the broad umbrella of GST.The empowered committee had to ensure there was development in IT system and infrastructure for smooth functioning of GST, which was overlooked by Nandan Nilekani.GST was officially passed in 2016 by Rajya Sabha with the required amendments.WHY GST?The question now arises, why was GST implemented or even thought of? The rational approach by the central government to implement GST was to streamline all the indirect tax regime which means the tax levied on goods (central and state level) will be streamlined creating a common market for all. So if you look at it, a certain tax is levied on value added goods and services at every stage (sale to purchase). This means, a consumer will bear the GST charged by the last service provider and will not pay anything that has to go to the manufacturer. GST here is breaking the barrier between states and it integrates one single rate throughout. Thus, a great boost for Indian economy.With the introduction of GST, bills now carry ‘CGST’ and ‘SGST’ on our bills now. Here both the central and state government have been assigned with certain fiscal responsibilities and thus had their own tax rates that they levied, but now considering the Indian federalism, both central and state government shall impose 9% tax under GST. WHAT EXACTLY IS CGST AND SGST?One needs to know what CGST and SGST currently means. ‘CGST’ would mean the tax levied on supply of any good and service which is the revenue for the Central Government, the tax that comprise this structure are excise, service, additional tax. The collection of ‘SGST’ means, tax levied on supply of goods which is revenue for the State Government. Tax like VAT, entertainment, luxury and entry tax are merged under this tax.There is another tax, the ‘IGST; which is abbreviated as integrated goods and service tax, while SGST and CGST are essentially the Intra state movement tax under GST. For the supply of goods and services that happens between two states tax is levied at 18 percent.HOW IS IT A BOOST TO THE INDIAN ECONOMY?The implementation of GST it is claimed to boost the Indian economy and create a common market for all taxpayers. THE AREA OF CONCERNGST has affected many sectors in various ways, and while prices have shot up for things like home appliances, charges like school fees, mobile bills, wifi services have become an expensive affair. Also, the bright side of GST being that luxury cars will be cheaper, movie tickets are few of the things that are said to becoming economic.GST has made its impact in many sectors in India. Previously there were different tax rates allotted in each state making it difficult for the flow of foreign investments. Now, it has eased the process of trade or supply by implementing uniform rates. The main concern behind GST was to boost the economy. Petrol, diesel and alcohol were few of the components that the states agreed not to add under the bill of GST because they generate close to 40% revenue for the state. With the implementation of GST, which means no entry tax, the state saw a steep fall in the price of petrol by Rs 3 right after the bill was passed (prices varied from state to state).Every legislation contains its own pros and cons. But, GST weigh with pros higher than cons. it is addressed as a beneficial taxation because ultimately the impact is prices are going to go down.To know about GST Impact on basic expenses  
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GST: The Revolutionary Move in Taxes

GST: The Revolutionary Move in Taxes

Saurabh Jain
BENGALURU: A 17-year-old dream, the Goods and Services Tax (GST), finally became a reality on July 1. The move, as claimed, will be a great push for Prime Minister Narendra Modi’s reform for develop...
Continue reading

The Many Ways GST Has Impacted Exports and Imports

India is a rapid growing economy and has gained its own stature globally. The global importance has paved way to substantial increase in imports and exports. It is particularly watchful on international trade as it augments the economic growth. Execution of the new tax regime is disruptive to most of the sectors and has its impacts widespread. GST implementation majorly resolved to create common national market, this in turn would alter the business structure in India. Enforcement of GST has modified the computation of custom duty and has brought about notable impacts on the import-export of goods.Import and export can be in both goods or services. Under GST, supply of goods and services are deemed as “Inter-state trade or commerce”. The tax levied on the act of supplying goods and services in the course of Inter-state trade or commerce is referred as “Integrated Goods and Services Tax”. And hence, the provisions are relevant for all imports and exports.IMPACT ON EXPORTSThe present scheme demands that importing raw materials and machinery can be made without applicable duties. The schemes are pertinent to “ab-initio” exemption or subsequent refund duties. The current GST system recommends that all duties must be paid at the time of transaction mandatorily, while refund  can be reaped after exports, as per section 38 of proposed Central GST Act, 2016 . The supplier is permitted to export without levying any tax. But  CGST, SGST and IGST credits discharged on inputs and input services can be availed.Here, the exporter has to gather money for manufacturing, inputs, payment of duties and taxes. GST causes blockage of working capital, as there is a provision of no exemption and only refund, resulting in blockage of about 185,500 crore annually. But without compromising on the rectitude of GST model, the working capital issues can be resolved. Tax payment transactions related to export should be allowed through e-currency. This would be identical to IOU, where it is permitted to set off with actual payment within a year or after execution of exports, whichever is earlier.To sum it all, exports are regarded as “zero rated supply”, while Input Tax Credit (ITC) is allowed and likewise the same is made available as refund to the exporters. IMPACT ON IMPORTS:The prevalence of tax will follow the principle, and tax revenue at instance of SGST will flow to state where the imported goods and services are usually consumed. GST paid on import of goods and services, full and complete set-off 14 15 is made available. Imports under GST are subjected to the imposition of IGST. Here imports attract basic customs duty pertaining to IGST.The trader importing goods and services are permitted to equilibrize IGST paid on imports against output liability. However, the credit of IGST is allowed but the credit of BCD is not available under the proposed law. GST embraces Special Additional Duty (SAD) and Countervailing Duty (CVD). Basic customs duty is not included and charged pursuant to the current law.  CVD is imposed on the valuation of transactions resulting in restructuring the working capital. The tax discharged is available as credit and pay back SAD is allowed. After performing certain compliance's, no restrictions are laid down under the new regime.  
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The Many Ways GST Has Impacted Exports and Imports

The Many Ways GST Has Impacted Exports and Imports

Kranthi Tilak Reddy
India is a rapid growing economy and has gained its own stature globally. The global importance has paved way to substantial increase in imports and exports. It is particularly watchful on internation...
Continue reading

Gold Inventory Rises up Fourfold

India is the second largest consumer of gold in the world, next to China. In accordance with provisional data from consultancy, Gold Fields Mineral Services (GFMS) showed that Gold imports have increased four times from last year to 103 tons in May, as jewelers are constantly purchasing recharge inventories and raising stocks before GST. Purchases were made in advance, close to 126 metric tons in May from 31.5 tons the previous year. Gold attracts 3 percent goods and services tax, which is in effect from July1. Ketan Shroff, the joint secretary at the India Bullion and Jewellers Association Ltd, mentioned that the rate is lower than anticipated. GST plays a major role in uniting India and attempts at providing a common market, to the citizens. The duty will supplant more than a dozen domestic levies, including state tariffs and excise tax. Since independence in 1947, GST is hailed as the biggest tax reform.  The massive import numbers were because people were worried about the kind of taxation that would come in but now that the tax has been fixed at a lower rate, imports will moderate going forward,” said Kunal Shah, head of research at Nirmal Bang Securities Pvt. over phone from Mumbai. India’s monsoon is expected to be normal and that would further underpin a demand recovery, he added. Demand is reckoned to be elevated by 2020 from an estimated 650 tons to 750 tons to somewhere between 850 tons to 950 tons this year. These are he consequences of new tax regime, the World Gold Council said in a report Thursday. “The gold supply chain should become more transparent and efficient, and the tax reform could boost economic growth, which we see as supporting gold demand.” said the council. This implied that the impact on the gold industry is positive. According to the finance ministry, as the fiscal year ended on March 31, the country’s imports descended to 716.4 tons that is about 20 percent, according to the finance ministry. 
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Gold Inventory Rises up Fourfold

Gold Inventory Rises up Fourfold

Saurabh Jain
India is the second largest consumer of gold in the world, next to China. In accordance with provisional data from consultancy, Gold Fields Mineral Services (GFMS) showed that Gold imports have increa...
Continue reading

GST on Exports and Imports

GST has been touted as the biggest reform post-independence with no insult to demonetization, which I consider, is a massive reform itself in a country like India. Exports & imports have been critical in driving this country’s economy for ages. So it is imperative to understand what GST brings to the table with respect to exports and imports. In the Pre-GST era, Customs duty, Excise, Service Tax and VAT played major taxation role on exports & imports. In the GST regime, Excise, Service Tax, and VAT have been replaced by GST and customs duty would continue to be part of the taxation system. Pre GST era: Imports In the pre-GST era, a person who imports goods to India had to pay customs duty, countervailing duty & special additional duty. Countervailing duty is levied at a rate equivalent to the rate of Excise on goods if they had been manufactured in India. Special additional duty is equivalent to VAT on the goods in India. The primary objective of imposing Countervailing duty & Special additional duty is to bring the imported product’s price at par with the market price in India to obviate price disparity. If the importer uses the imported goods to manufacture dutiable goods in India or provide taxable services, Countervailing duty paid on inputs was available as a tax credit. If the importer is just a trader, Countervailing duty on imports was not available as credit. Special additional duty paid on import is eligible for a refund, subject to conditions. However, no credit is given on customs duty paid by the importer. Example: ABC PVT LTD imports cricket bats from XYZ PTE LTD, Melbourne (Australia) taxation would be as belowPre GST era: Import of Services  A person who avails imports services had to pay Service Tax at the Service tax rate applicable in India. The importer can claim a tax credit of the Service Tax paid on import of services.  Pre GST era: ExportsExport of goods and services wasn’t taxed, i.e. tax on exports was NIL. An exporter could also claim a refund of the tax paid on inputs used to manufacture the exported goods or services.GST era: ImportsIn the GST regime, a person who imports goods has to pay customs duty and IGST. As mentioned earlier, countervailing duty & special additional duty levied on imports has been replaced by IGST under GST. IGST will be levied at the rate applicable to the imported goods in India. An importer can claim a full tax credit of GST paid on imports. Hence, importers who were unable to claim a credit of countervailing duty & special additional duty in the pre- GST regime can now claim a full tax credit of the IGST paid on imports. However, no tax credit will be given on Custom duty paid and it remains a cost for the importer under GST as well.Example: ABC PVT LTD imports cricket bats from XYZ PTE LTD, Melbourne (Australia) taxation would be as below●    Considering 18 % tax on cricket batsGST era: Import of servicesPost-GST, import of services would be taxed under GST as per the applicable slabs.Example: GST era: Export of Goods/ServicesExport of goods and services wouldn’t be taxed, i.e. tax on exports would continue to be NIL. An exporter can also claim a refund of the tax paid on inputs used to manufacture the exported goods or services.GST is slated to bring down the overall cost of exports & imports, however, only time would tell the actual implications of GST. So let’s brace up & embrace this change while the dust settles down & we get further clarity.
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GST on Exports and Imports

GST on Exports and Imports

Kranthi Tilak Reddy
GST has been touted as the biggest reform post-independence with no insult to demonetization, which I consider, is a massive reform itself in a country like India. Exports & imports have been critical...
Continue reading

GST Influences Rupee Value

After the Rajya Sabha’s ratification in bringing the Goods & Services Act into force, the Reserve Bank of India intervened to raise the Indian Rupee's value  appreciation against the US dollar. There are also vast expectations from the global investors. The investors are majorly focused on the highest yielding emerging markets as government’s measures ease them with the backing of economic policies. "Depending on the global risk sentiment we could see fund flows into India continuing in the coming months," said Brijen Puri, managing director, head of markets, JP Morgan (India). "It would be an opportunity for the RBI to shore up our dollar reserves, which could be used to moderate volatility in future." The rupee rolled up by 15 paisa to the greenback, which led some banks to involve in dealing dollars in early trades on behalf of the central bank on Thursday. Later it rose up by 0.10 percent and paired gains to close at 66.92 from 66.99 on Wednesday. The rupee is mostly expected to be  traded in the range of 66.50-67.50 per dollar which lied in the range 67-68, a few weeks ago. Further, the rising of  global liquidity may build excessive pressure on the currency. After its full-fledged enactment, GST would effect in inflation in the short term, but in the long run, it would aid to increase the total gross domestic product as much as 2%. This, combined with better tax compliance and inflated rates on services would boost the government’s finances. The constant fear of the government’s fiscal being dreadful could also end in the post-GST period. MS Gopikrishnan, head of FX, rates and credit trading at Standard Chartered Bank said- "Unanimous decision to amend the constitution to pave way for introduction of GST is a big positive and will renew optimism among foreign investors.” "While the rupee market had largely priced in the amendment, higher inflows from overseas investors should help the rupee to appreciate." he added. "Post Brexit global central banks including BoJ, BoE have become aggressive in injecting liquidity into the financial markets," said Anaindya Banerjee, senior analyst at Kotak Securities. "This has helped emerging markets like India, which stands to gain more inflows in coming days." Mark Carney, Governor of Bank of England united the European Central Bank and the BOJ in triggering  the economy, by trimming rates on bond purchases of $170 billion. In the months ahead, more than $26 billion outflow from NRI deposits is anticipated.  This could aid the Central bank to accumulate reserves.
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GST Influences Rupee Value

GST Influences Rupee Value

Piuesh Daga
After the Rajya Sabha’s ratification in bringing the Goods & Services Act into force, the Reserve Bank of India intervened to raise the Indian Rupee's value  appreciation against the US dol...
Continue reading

Banking Services Insurance Credit Card Bills Get Expensive Due Gst Impacts

With the introduction of Goods and Services Tax(GST) impacts have been widespread and financial services are not an exception. Under this new tax regime, consumers will have to pay additional charges for opting banking services, insurance premium payments and credit card bills. Under the new indirect tax regime, higher tax of  18 percent is attracted against the previous 15 percent on almost all the financial services. The same applies to life non-life premiums.“Dear policyholder, revision of service tax on account of GST will come to effect from July 1, 2017,” said a Life Insurance Corporation of India (LIC) message.Punjab National Bank (PNB) informed its customers that “with effect from July 1, 2017, the existing service tax of 15 per cent levied on all the banking services will be replaced by a GST of 18 per cent.” Meanwhile, HDFC said, “GST is being implemented from 1 July 17. In accordance, Service Tax of 15% will change to 18%. Provide GSTIN for your a/c @ customercare@hdfcsec.com.”The new tax rates are kept informed to the customers through mails and messages by almost all banks and insurances companies. Among the banking services that will attract increased service tax are- debit cards, cash handling charges, collection of bills, issuance of cheque, ATM withdrawal beyond the number of free services, locker rentals, issuance of cheque/ books/ drafts/ duplicate passbooks, home loan processing fee, collection of outstation cheques and SMS alerts.Reflecting on the implementation of GST, Chanda Kochhar, MD & CEO, ICICI Bank said, “The Goods & Services Tax is a transformational structural reform which will have multiple benefits – the creation of a national market; enhanced ease of doing business; greater productivity & efficiency; and improved tax compliance. All stakeholders are working together for a seamless transition to this new paradigm. This reform will result in benefits for all participants in the Indian economy, including both businesses & consumers.”On June 30, midnight, India witnessed the inauguration of GST in Central Hall of Parliament at a special midnight ceremony. GST was addressed as “Good and Simple tax” by Prime Minister Narendra Modi. He added that GST will  “not only be a tax reform but an economic and social reform as well” that will unify the nation, “check corruption and end harassment at hands of officers”.President Pranab Mukherjee, Vice-President Hamid Ansari, Union Finance Minister Arun Jaitley, Speaker Sumitra Mahajan, former Prime Minister H D Deve Gowda, MPs and other VIPs were present during the grand event.
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Banking Services Insurance Credit Card Bills Get Expensive Due Gst Impacts

Banking Services Insurance Credit Card Bills Get Expensive Due Gst Impacts

Saravana Bhaskar
With the introduction of Goods and Services Tax(GST) impacts have been widespread and financial services are not an exception. Under this new tax regime, consumers will have to pay additional charges ...
Continue reading

How GST Impacts Basic Expenses

Goods and services tax (GST) is to be executed from 1st july at a function in Delhi, confirms Arun Jaitley. It has impacts on some basic expenses like automobile, life insurance, hotel stay, gold ornaments, refined cooking oil, air travel, train travel, telecom, eating out, apparel, entertainment etc. This indirect tax reforms is being touted as the biggest tax reform since Independence. GST has been proposed with four slabs starting from 5%, 12%, 18% and 28% being the highest.  Traders of GST has to file three returns each month. The online filing system ends up processing 5 billion invoices a month approximately. Requests have been made by some business groups for the roll out to be delayed or allow them more time to get ready. Relaxation until September is allowed to ensure that it doesn’t impact or hurt small traders or others who may not be ready for the new arrangement. In favour, the council has approved for creation of anti-profiteering authority. The committee will prevail for two years while clearing some pivotal elements of the tax framework. Any complaints of profiteering would reach the standing committee, it would be then forwarded to the Directorate of Safeguards(DGS) for investigation. On completion of investigation, it would be handed to anti-profiteering authority to decide upon the penalty to be charged.It has its well-defined set rates as follows:Automobile - Small cars (30%-29%) Suv’s (55%-43%) and bikes under 350 cc will draw 28 % instead of 30% as per old tax structure, above 350cc additional 3% cess. Electric vehicles are also not an exception to GST, they will  cost more as 12% tax will waive off. The 28% tax on spare parts is suggested and for services, tax will get higher by 3%.Life insurance- While the premium of non-life policies and term plans are taxed, only charges like mortality, AMC charges etc in other life insurance policies attract GSTGold- 3% GST on gold and 5% on making charges Hotel Stay- Below 1,000 no GST to pay, anything above 5,ooo attracts 28%Refined oil- Prices of hair oil will stay high due to 18% GST.,but coconut oil being refined cooking oil, will be taxed at 5%, all oil seeds and edible oils are taxed at 5%. It is not much affected as it already draws 5% VAT.Train travel- Only first-class and AC compartment travellers will pay more, others are not affected. Transport of goods by railways will pull 5% of GST .Eating out- 28% GST at restuarant in 5 star hotels, if non AC, only 12% is chargedApparel- Garments below 1,000 INR been brought down from 12% to 5%Grocery items- GST hit on food items and monthly household budget can be significant. Processed foods can cost more than your essential food groceries, everyday consumed food items like most milk products, coconut water, eggs are exempted from any tax. Some of the food items are placed under 18% slab they include: Condensed milk, corn flakes,malt, jams, soups, margarine, vegetable fats or oils, refined sugar (containing flavouring), preserved vegetables and fruits, pasta, noodles, pastries, cakes, ice cream, sauces, tea and coffee extracts and mineral water.However substances containing sugar like chocolate, chewing gums, wafers, syrups, cold drinks and other sweeteners are topped the slab with 28% GST. * This includes excise, sales tax, VAT, entertainment tax, luxury tax, etc; Average tax considered.This system will help economy become more efficient and we should anticipate greater benefits for everybody. The primary idea is to create an undivided Indian market for an efficient economy.For more information Click here
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How GST Impacts Basic Expenses

How GST Impacts Basic Expenses

Piuesh Daga
Goods and services tax (GST) is to be executed from 1st july at a function in Delhi, confirms Arun Jaitley. It has impacts on some basic expenses like automobile, life insurance, hotel stay, gold orna...
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